The UK’s base oils supply fell in January to the second-lowest level in sixteen months amid a dip in domestic output and lower-than-usual imports.The drop in supply contrasted with a rise in domestic and overseas demand to a five-month high.The disconnect left supply lagging demand for the third time in four months.Lower supply in January added to a dip in Group I base oils output in other regional markets like Italy and Spain.The lower output in turn cushioned the impact of a seasonal slowdown in Europe’s lube consumption during the first quarter of the year.Any extension of the drop in regional supply into the second quarter of the year would likely coincide with a seasonal pick-up in lube consumption.The UK’s base oils output of 14,000 tonnes in January fell from more than 23,000 tonnes in December, government data showed.Output had already paused throughout most of October and November.Base oils imports failed to make up the shortfall amid a dip in shipments from Belgium and the Netherlands.The drop in supplies from the Netherlands coincided with lower-than-usual base oils output in the country in December and January.The country's output likely stayed lower in February because of the shutdown of its sole virgin base oils plant that month for maintenance work.The slowdown added to the drop in the UK's supply, or domestic output and imports combined, to less than 41,000 tonnes in January, from more than 44,000 tonnes the previous month.Lower supply contrasted with a rise in domestic consumption and a rebound in exports to a five-month high.Little more than 20% of the shipments moved to Europe, curbing a build-up of supplies in that region.More than 70% of the shipments moved instead to markets in Africa like Ghana, South Africa, and Kenya.The rise in shipments lifted total demand, or domestic consumption and exports combined, to almost 53,000 tonnes in January, from less than 28,000 tonnes the previous month.The volume outpaced supply by more than 12,000 tonnes.The supply shortfall was the largest since last June..Italy’s January base oils output falls
The UK’s base oils supply fell in January to the second-lowest level in sixteen months amid a dip in domestic output and lower-than-usual imports.The drop in supply contrasted with a rise in domestic and overseas demand to a five-month high.The disconnect left supply lagging demand for the third time in four months.Lower supply in January added to a dip in Group I base oils output in other regional markets like Italy and Spain.The lower output in turn cushioned the impact of a seasonal slowdown in Europe’s lube consumption during the first quarter of the year.Any extension of the drop in regional supply into the second quarter of the year would likely coincide with a seasonal pick-up in lube consumption.The UK’s base oils output of 14,000 tonnes in January fell from more than 23,000 tonnes in December, government data showed.Output had already paused throughout most of October and November.Base oils imports failed to make up the shortfall amid a dip in shipments from Belgium and the Netherlands.The drop in supplies from the Netherlands coincided with lower-than-usual base oils output in the country in December and January.The country's output likely stayed lower in February because of the shutdown of its sole virgin base oils plant that month for maintenance work.The slowdown added to the drop in the UK's supply, or domestic output and imports combined, to less than 41,000 tonnes in January, from more than 44,000 tonnes the previous month.Lower supply contrasted with a rise in domestic consumption and a rebound in exports to a five-month high.Little more than 20% of the shipments moved to Europe, curbing a build-up of supplies in that region.More than 70% of the shipments moved instead to markets in Africa like Ghana, South Africa, and Kenya.The rise in shipments lifted total demand, or domestic consumption and exports combined, to almost 53,000 tonnes in January, from less than 28,000 tonnes the previous month.The volume outpaced supply by more than 12,000 tonnes.The supply shortfall was the largest since last June..Italy’s January base oils output falls